The exotic futures sector and the grain futures sector can lead to the following part of the bull commodity market for many reasons:
o Coffee futures prices have recently reached a 10-month high based on expectations of a lower world yield next year.
o Cocoa futures prices have recently reached a 5-month high based on current problems in Ghana and the Ivory Coast, where over 50% of the world’s cocoa stocks come from. Government turmoil and the swollen root virus (a virus that kills cocoa trees) are the two main problems that currently affect cocoa prices more.
o A recent USDA report estimates that the yield of orange juice in Florida will be the lowest in 15 years. Florida’s orange juice crops have been decimated by hurricanes, citrus crabs and green citrus for the past 3 years.
o The latest USDA report estimates that corn stocks ultimately amount to 935 million bushels (the lowest level in 11 years). Forward prices for corn have been adjusted from 10-year highs, but increased demand for ethanol and high demand for feed for poultry, cattle and pigs may limit prices downward. Visit http://www.tkfutures.com/corn.htm to learn more about corn futures and options trading.
o Wheat futures prices have recently fallen from 10-year highs, but the latest USDA report estimates world stocks at 121 million tonnes. That would be a 21% inventory-to-consumption ratio, the most difficult in 11 years. Demand has surpassed wheat production in the last 5 years.
o Prices of soybean terminals have risen by $ 1 per bushel based on demand for biodiesel, soybean rust problems and expected smaller planted areas due to larger corn plantings next year. Visit http://www.tkfutures.com/soybeans.htm to learn more about futures and soybean options trading.
o Any investor considering trading in grain commodities should also consider El Nino weather pattern forecasts for above-average temperatures and below-average rainfall for the cereal belt next spring and summer. Time can create more problems in an already precarious situation with cereals.
o The US dollar is also weak against other foreign currencies, which increases the purchasing power of foreign companies, which should also stimulate higher demand for US cereals and agricultural products.
If you are new to the commodity trade, visit http://www.tkfutures.com/basics.htm to learn the mechanics of the commodity trade.
To learn more about the various strategies for future trading and options trading, visit http://www.tkfutures.com/strategies.htm [http://www.tkfutures.com/strategies.htm%20]
Commodity futures and options trading are very risky and only venture capital should be used. Go to http://www.tkfutures.com/risk_disclosure.htm to better understand commodity risks before investing in futures benefits or options. There are no guaranteed good shops.